GE sees infrastructure, services growth

PadraicCassidy

NEW YORK (MarketWatch) - General Electric Co. predicted Tuesday its revenue in 2006 would rise about 10% to $165 billion, as it concentrates on its growth platforms in developing countries, technology and financial services.

The Fairfield, Conn.-based diversified industrial manufacturer said its profit would rise 12% to 17% to a range of $1.92 to $2.02 a share.

GE
GE, +0.79%
which reorganized into six reporting segments from 11 earlier this year, also said in an investor presentation that it expected rising interest rates and inflation in 2006.

Analysts polled by Thomson First Call forecast earnings of $1.98 a share in 2006 for GE, on average.

GE also affirmed its analyst-matching forecast of $1.72 a share in 2005 earnings.

GE Infrastructure, 35% of its business, would earn about $9 billion on sales of $47 billion in 2006 as it expects to win more aircraft engine orders and grow its energy and oil and gas businesses. Rail locomotives are being manufactured full-tilt, GE Chairman and Chief Executive Jeff Immelt said in the presentation. "As many as we can make, we will sell next year," he said.

The one flat segment was NBC Universal, the company's entertainment arm, where profits in 2006 would remain at about $3 billion. NBC will televise Sunday games of the National Football League, taking pressure off the network's struggling prime-time lineup, Immelt said.

The stock, a component of the Dow Jones Industrial average, fell 8 cents Tuesday to $35.47.

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